More on Countrywide GREED

A recent article on Reuters: http://investing.reuters.co.uk/news/articleinvesting.aspx?type=bankingFinancial&storyID=2007-03-16T170127Z_01_N16254655_RTRIDST_0_SP_PAGE_012-N16254655-OISBN.XML

There is a specific quote from Mozillo when asked about his
$140 million worth stock sales over 14 months, he said he was "running out of time" and needed "balance" in his life. I really feel sorry for you. I wonder what "balance" can be bought in life for $140 million? Probably greed.

More importantly, there has been some speculation regarding possible merger with Bank of America (BAC) and that notion was dispeled by the Chief Excecutive Kenneth Lewis in January 07 saying, "the bank 'unequivocally' plans to expand mortgage business organically.

Also, Robert Lacoursiere of Banc of America is the only analyst with a SELL rating on the stock. He specifically states that ""Countrywide has chosen to pursue increased leverage and origination market share gains to hold up earnings," Lacoursiere wrote on Monday. "It is more susceptible to cyclicality and the associated credit risk in a declining competitive market."

While many analysts are pumping hard for Countrywide, unanimously they have lowered expectations for the company. Since Monday, analysts have lowered their average first-quarter profit forecast to 88 cents per share from 98 cents. Countrywide trades around 8.5 times 2007 earnings, below Washington Mutual's 10.5 times and Wells Fargo's 12.5 times. Don't you love that? Let's upgrade the company while downgrading earnings expectations. These deceptive actions by the analysts will lead a lot of investors down the road of Enron.

I am sorry that this site has been dominated by Countrywide (CFC) lately but this company's actions will shed some light into which direction our economy will be headed as I firmly believe that a mortgage industry shakeup and melt down will prelude the US recession and possibly stagflation.

I am short CFC.